Chapter 1: Introduction to Project Management IT Project Management, Third Edition Chapter 1

More Information on Project Management More than half a million new information technology (IT) application development projects were initiated during 2001, up from 300,000 in 2000.* Famous business authors and consultants are stressing the importance of project management. As Tom Peters writes in his book, Reinventing Work: the Project 50, “To win today you must master the art of the project!” *The Standish Group, “CHAOS 2001: A Recipe for Success” IT Project Management, Third Edition Chapter 1

Motivation for Studying Information Technology (IT) Project Management IT projects have a terrible track record A 1995 Standish Group study (CHAOS) found that only 16.2% of IT projects were successful and over 31% were canceled before completion, costing over $81 B in the U.S. alone The need for IT projects keeps increasing In 2000, there were 300,000 new IT projects In 2001, over 500,000 new IT projects were started IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 What Is a Project? Definition A project is “a temporary endeavor undertaken to accomplish a unique product or service” (PMBOK® Guide 2000, p. 4) Attributes of projects It has a goal (single definable purpose) It has a start and a finish It requires resources It requires coordination It is a temporary structure It is mounted to achieve change It is unique (non-routine) activity Unfamiliarity Life cycle Something at steak May Cut across organizational lines IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 Variables in Tension Quality Scope/Quality Time Cost Cost Time Cost Time IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 www.pmi.org World’s Leading Project Management Professional Organization Established in 1969 Over 86,000 Members – 125 Countries Aerospace, Automotive, Business Management, Construction, Engineering, Financial Services, Information Technology, Pharmaceuticals & Telecommunications. IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 Samples of IT Projects Northwest Airlines developed a new reservation system called ResNet (see case study on companion Web site at www.course.com/mis/schwalbe) Many organizations upgrade hardware, software, and networks via projects Organizations develop new software or enhance existing systems to perform many business functions Note: “IT projects” refers to projects involving hardware, software, and networks IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 The Triple Constraint Every project is constrained in different ways by its Scope goals: What is the project trying to accomplish? Time goals: How long should it take to complete? Cost goals: What should it cost? It is the project manager’s duty to balance these three often competing goals IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 The 2001 Standish Group Report Showed Decided Improvement in Project Success Time overruns significantly decreased to 163% compared to 222% Cost overruns were down to 145% compared to 189% Required features and functions were up to 67% compared to 61% 78,000 U.S. projects were successful compared to 28,000 28% of IT projects succeeded compared to 16% IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 Why the Improvements? "The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.“* *The Standish Group, "CHAOS 2001: A Recipe for Success" (2001) IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 Project Stakeholders Stakeholders are the people involved in or affected by project activities Stakeholders include the project sponsor project team support staff customers users suppliers opponents to the project IT Project Management, Third Edition Chapter 1

Figure 1-2. Project Management Framework IT Project Management, Third Edition Chapter 1

9 Project Management Knowledge Areas Knowledge areas describe the key competencies that project managers must develop 4 core knowledge areas lead to specific project objectives (scope, time, cost, and quality) 4 facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management) 1 knowledge area (project integration management) affects and is affected by all of the other knowledge areas IT Project Management, Third Edition Chapter 1

History of Project Management Some people argue that building the Egyptian pyramids was a project, as was building the Great Wall of China Most people consider the Manhattan Project to be the first project to use “modern” project management This three-year, $2 billion (in 1946 dollars) project had a separate project manager and a technical manager IT Project Management, Third Edition Chapter 1

IT Project Management, Third Edition Chapter 1 Sample Gantt Chart The WBS is on the left, and each task’s start and finish date are shown on the right using a calendar timescale. Early Gantt Charts, first used in 1917, were drawn by hand. IT Project Management, Third Edition Chapter 1

Sample Network Diagram Each box is a project task. Arrows show dependencies between tasks. The bolded tasks are on the critical path. If any tasks on the critical path take longer than planned, the whole project will slip unless something is done. Network diagrams were first used in 1958 on the Navy Polaris project, before project management software was available. IT Project Management, Third Edition Chapter 1

Table 1-2. Top Ten Most in Demand IT Skills IT Project Management, Third Edition Chapter 1

Growth in PMP Certification, 1993-2002 IT Project Management, Third Edition Chapter 1